Assignment 3 PDF

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Assignment 3...

Description

Introduction

The purpose of the following company analysis of Premier Investments Limited is to provide an overview of the companies financial position. The below report includes an economic analysis using various performance rations. This report gives the reader a glimpse of Premier Investments Limited's history as a company where it has been and where currently it sits within the Australian Securities Exchange. The report gives an overview of Premier Investments efforts to raise funds for its most significant charitable works. Along with a brief overview of its environmental strategy to ensure that it complies and sets examples for the fight against climate change. Then a more recent review of the different profitability, liquidity and efficiency. It is designed to assist potential investors when making decisions around investing in Premier Investments Limited.

Company & Industry Background

Premier Investments Limited (PMV) has its headquarters in Melbourne Australia, being first established on March 26, 1987, and became a listed company on the Australian Securities Exchange (ASX) on December 12, 1987. (Factiva 2019, Premier Investments Limited, Factiva) Premier Investments Limited is an investment company which primarily invests across various retail however also extends to classify consumer products and wholesale distribution. Premier Investments Limited has a controlling interest in the following retail brands; The Just Group, Dotti, Jacqui E, Jay Jays, Peter Alexander, Portmans, Smiggle and Just Jeans. It is extending its reach into various locations around the world including Australia, New Zealand, the United Kingdon, the Republic of Ireland and different locations throughout Asia including Malaysia, Hong Kong and Singapore.

As of September 5, 2019, Premier Investments Limited has a Market Value of $2,440m with approximately 158.4m shares and a closing rate of $15.40 per share. (‘PMV’ 2019, Australian Securities Exchange, viewed 7 September 2019 https://www.asx.com.au/asx/share-priceresearch/company/PMV). Premier Investments has shown significant growth in its online sales division. Across all brands, we see over 65% increase in sales. Hitting $112.5 million sales for FY18 which is two years ahead of schedule. Breaking down Premier Investments two major individual brands we see significant global sales at Smiggle of $293.0 million in FY18. An increase of 22.7% from the previous year and 58% over the two years previously combined.

(Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 6, ) Peter Alexander also had record sales of $218.7 million, up 14.5% of the prior year and 31% over the two years. (Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 7, ) The following graph is a brief snapshot of the more recent performance of Premier Investments (PMV) compared to its competitors. The comparison based on share price performance over the last six months. The major competitors listed are; AP Eagers Limited (APE), SkyCity Entertainment Group Limited (SKC), Breville Group Limited (BRG) and Corporate Travel Management Limited (CTD).

(‘PMV’ 2019, Australian Securities Exchange, viewed 7 September 2019 https://www.asx.com.au/asx/share-price-research/company/PMV)

Assessment of Other Relevant Information

Premier Investment Limited has had a strong history of community support; this primarily rests on their two premium brands (Smiggle and Peter Alexander). Detailed in the FY18 report, Premier Investments the Peter Alexander brand has been working with the RSPCA over the last 12 years and extending over the previous four years to Paw Justice in New Zealand. Peter Alexanders support extends to all 140,000 shelters across Australia and well over $800,000 in financial aid. In the four years since Peter Alexander has involved itself with Paw Justice, this number totals over $90,000 raising essential funds for the fight against animal abuse. Smiggle has helped raise money and provided over $85,000 worth of support for children's charities both locally and abroad with a focus on education along with just raising finds. (Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 10, )

Premier Investments Limited are also committed to Environmental Change by introducing their policies and procedures that help the fight against the risk of climate change. Premier Investment outlined in their action plan four critical areas of focus; Optimising packaging to reduce environmental impact; Increasing the collection and recycling of packaging; Commitment to product stewardship; and Implementation of Sustainable Packaging Guidelines. Along with ensuring that Premier Investments use paper mills that use 100% recyclable products and the change to more energy-efficient practices in their customer-facing stores and its headquarters. Premier Investments hope that these changes help them to engage with its staff and the communities to better connect with them on the whole. (Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 11, )

References Factiva 2019, Premier Investments Limited, Factiva ‘PMV’ 2019, Australian Securities Exchange, viewed 7 September 2019 . Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 6, . Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 7, . Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 10, . Premier Investments Limited 2018, Annual report FY 2017-2018, Premier Investments Limited, viewed 7 September 2019, pp 11, ....